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European unemployment insurance. From undercurrent to paradigm shift

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  • László Andor

Abstract

The need for the European Union to get involved in unemployment insurance has frequently been debated in the past decade, starting from exploratory discussions and eventually becoming a political commitment by the European Commission President. This article looks back at the origins of the idea of an EU-level unemployment benefit scheme and explains the political dynamics of the concept’s evolution. Following the 2009 Great Recession and the subsequent eurozone debt crisis, a new movement for a reinforced social dimension has been pushing the EU beyond its previous red lines. The case for counter-cyclical social stabilisation at EU level is now a touchstone for a materially meaningful EU social dimension. The COVID-19 crisis triggered a giant leap to a greater EU budgetary capacity, including financial support for job-saving schemes. This article argues that these new instruments will not suffice without also creating an EU safety net for those whose jobs cannot be saved in a period of economic downturn.

Suggested Citation

  • László Andor, 2022. "European unemployment insurance. From undercurrent to paradigm shift," Transfer: European Review of Labour and Research, , vol. 28(2), pages 267-283, May.
    • Handle: RePEc:sae:treure:v:28:y:2022:i:2:p:267-283
    DOI: 10.1177/10242589221099810
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    References listed on IDEAS

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    1. Heikki Oksanen, 2016. "Smoothing Asymmetric Shocks vs. Redistribution in the Euro Area: a Simple Proposal for Dealing with Mistrust," CESifo Economic Studies, CESifo Group, vol. 62(2), pages 332-375.
    2. Grégory Claeys & Zsolt Darvas & Guntram B. Wolff, 2014. "Benefits and drawbacks of European Unemployment Insurance," Policy Briefs 847, Bruegel.
    3. László Andor, 2020. "SURE — EU Capacity for Stabilising Employment and Incomes in the Pandemic," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(3), pages 139-142, May.
    4. Beblav�, Miroslav & Maselli, Ilaria, 2014. "An Unemployment Insurance Scheme for the Euro Area: A simulation exercise of two options," CEPS Papers 9889, Centre for European Policy Studies.
    5. Heikki Oksanen, 2016. "Smoothing Asymmetric Shocks vs. Redistribution in the Euro Area: A Simple Proposal for Dealing with Mistrust in the Euro Area," CESifo Working Paper Series 5817, CESifo.
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    Cited by:

    1. Tomas Berglund & Torsten Müller & Tomas Berglund & Torsten Müller & Tomas Berglund & Torsten Müller, 2022. "Editorial and Introduction," Transfer: European Review of Labour and Research, , vol. 28(2), pages 157-179, May.

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